If you’re selling your business, you’re probably hoping to maximize the cash you take home. That means you may be reluctant to needlessly spend money, and may be skeptical of the benefits of an M&A advisor. An M&A advisor adds real value to a transaction. Understanding this value can help you choose the advisor who is right for you.
Reasons to Hire an M&A Advisor
Research consistently demonstrates that M&A advisors add real dollar value to a transaction. They level the playing field, bringing their marketing experience and years of expertise to the transaction. Because the buyer likely has experience buying a company, this can help you ensure you get a fair deal. Some benefits of hiring an M&A advisor include:
- Buyers know that sellers who hire an advisor are more committed to the sale because they’ve already invested in it.
- An M&A advisor can expedite the sale process by overcoming last-minute hurdles and mitigating buyer delay tactics.
- Sellers who work with an advisory team typically have a more realistic value assessment, so are less likely to hold out for a sale price that will never happen.
- Buyers understand that sellers who work with an advisory firm will be better prepared to navigate due diligence. This can pique their interest because buyers are inherently risk-averse, and do not want to uncover unpleasant surprises during due diligence.
Last-Minute Support: A Key Benefit of Hiring an Advisory Firm
Every deal goes sideways at least once. Sooner or later, something will come up—a surprise during due diligence, a dispute about the terms and conditions of the deal, or something you never anticipated. Having an experienced dealmaker on your team can help you focus on the long-term, so you can see the transaction through to completion. Moreover, your advisor can act as an intermediary, delivering bad news and negotiating challenging aspects of the deal so you can maintain a good relationship with the buyer.
You’ll probably only sell a company once. So it’s unreasonable to expect that you can bring the same level of expertise to the transaction as someone who has overseen dozens, or even hundreds, of sales. When you work by yourself, you don’t have the benefit of experience and expertise. Partner with an advisory firm and you can immediately begin drawing on the wisdom that comes from years, or even decades, of successful transactions.